A California broker is found by the DRE to have committed multiple violations over several years. After a formal hearing, the DRE Commissioner decides to revoke the broker's license. Under California law, what happens to the claims paid from the Real Estate Recovery Account on behalf of the broker's victims?
Correct Answer
B) The broker must repay the Recovery Account in full, plus interest, before any future license reinstatement can be considered
Under California Business and Professions Code §10475, when a payment is made from the Real Estate Recovery Account on behalf of a licensee, the licensee's license is automatically suspended. Before the licensee can apply for reinstatement, they must repay the Recovery Account in full, plus interest. This requirement ensures the Recovery Account is replenished for future claims.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
More Laws Of Agency Fiduciary Duties Questions
A property sold for $450,000. The commission rate was 6%. If the listing broker received 60% of the total commission, how much did the listing broker receive?
An individual who is not employed by the client, but has been delegated agency duties by an agent of the client, is referred to as a(n):
What are the three steps of the agency disclosure in proper chronological order?
An agent needs to disclose a conflict of interest to the affected parties when a principal or service provider in the transaction is the agent’s:
A broker who simultaneously represents the best interests of both opposing parties in a transaction is known as a(n):
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